3 pts Clarksten Co. and Kay Inc. exchange equipment. Information related to this exchange for both companies follows. Clarksten Co. Kay Inc Equipment given up Equipment (original cost) $45,000 $35,000 Accumulated depreciation 25.000 20,000 Fair value 18,000 20,000 Cash exchanged (4,000) 4,000 Assuming that the exchange has no commercial substance. Kay Inc. should recognize a Gain of $1.000 Gain of $5.000 Gain of $4,000 Loss of $5,000 Previous Next